In the process of export, enterprises face many challenges, especially for judgment of the composition and reasonability of the costs. This article aims to detail the composition of the costs of goods, to help enterprises understand the costs, and to distinguish which of them are reasonable, which may be charged by goods by name, so that the number in mind.

Composition of cargo costs.

Composition of transportation

Shipping charges are not just the price of shipping, but also a variety of supplementary charges. These supplementary charges are complex sources, including charges charged by the shipowner, charges charged at the port of departure or destination, and charges charged by the shipowner themselves. Many charges have no fixed standards and are very flexible. In addition to charges charged to the sender, some charges may also be charged to the receiver (i.e. foreign customers). This practice can lead to two major problems: one is that some cargo can randomly charge multiple charges; and the other is that the cargo can adjust or transfer part of the charges between the receiver and the sender.

Understanding of expenses.

Common expenses include:
ORC (additional fee for departure port terminals): The cost is charged by the port of departure.
DDC (destination port withdrawal fee) Delivery costs charged by the destination port.
THC (Port Operating Fee) It is used to cover terminal operating costs, such as hanging cabin fees.
BAF (Fuel Supplementary Fee) It is used to compensate for fluctuations in fuel prices.
CAF (Monetary Devaluation Supplementary Fee) Additional costs caused by currency depreciation.
Docs and documents (docs and documents): costs incurred in handling documents.
PSS (additional fees for the high season): Additional costs charged during the high season.
Cost of AMS / ENS: The AMS fee is typically $25-35 per unit, while the ENS applies to the EU Customs Pre-Class Declaration Rules.

Adjustment and charging issues

Importance of AMS and ENS data

AMS and ENS data are class data declared to the U.S. and EU customs 24 hours before shipment, which are eventually displayed on the receipt. If the data is incorrect, it must be modified, and the fee for the change is generally 500RMB + 40USD.

Reasonability of Costs

The items charged for these charges may vary depending on time and route, but are basically fixed across the industry. If one cargo is charged for charges that other cargoes do not normally charge, this can be a problem and requires careful consideration by the enterprise.

Choosing the right cargo.

When choosing the shipment to cooperate, the business staff should discuss with several potential partners and eventually identify the partner. In the preliminary selection, the company’s size, route, service level, etc. are mainly considered to ensure that the shipment is delivered as expected.

Understanding the composition of freight charges is crucial for export. Companies need to be able to distinguish between which charges are necessary and reasonable, and which may be additional charges for freight charges. Understanding freight charges can help companies better control costs and avoid unnecessary expenses. At the same time, choosing a suitable freight partner is also a key factor in ensuring that exports go smoothly.